Broward schools overpaid security firm by $129,000, audit finds

February 19, 2013|By Karen Yi, Sun Sentinel

The Broward school district overpaid a security firm by $129,000, according an internal audit that found the district grossly mismanaged the contract, paid unnecessary overtime and late fees, and even paid guards after the contract expired.

U.S. Security Associates, Inc. was contracted in 2009 to provide security guards to various bus facilities and the district's administration building. The district's school police department handled payments and verified work hours. An audit into the contract payments was requested by Superintendent Robert Runcie.

"I find it disturbing that of all places where this would occur, it would occur within [this department], which most of us assume is investigating instances like this," said audit committee member Mary Fertig during a meeting last month.

Police Chief David Golt, who came into the district in 2010, blamed the previous administration for the lack of internal controls and said he'd implement tighter oversight.

"The process for handling the payments and verification of work performed by the contracted security services was compromised," Golt wrote to the auditor's office. "This process lacked fidelity because there was not a mechanism for the Executive director to ensure the work had been completed, therefore, approving the invoices could result in errors."

The audit committee, though, questioned why security guards remained working on district property months after the contract expired in April 2012. The firm billed the district $1,700 for hours worked after that date.

Golt said he believed certain locations had requested additional services without his consent.

"I personally don't have knowledge of who came up with it and authorized it," Golt said. "We didn't know they were there … as soon as we knew about it, we dealt with it."

The bulk of the overpayment was for excess hours paid to guards who were often found sleeping on the job and worked beyond allowable contract terms, the audit found. Payments were approved without any verification from individual locations that in turn did not keep time records.

In addition, the report found the district paid $11,700 for late fees despite there being no clause in the contract on late fees. There were also excessive charges for the use of golf carts that were based on the total hours worked by the guard rather than the actual time spent using the cart.

Audit committee member Charlotte Greenbarg said the findings underscored the need to look at how the district handles its contracts and pays vendors. "This is a red flag for all the contracts … this is totally unacceptable."

The auditor's office recommended the district seek $86,000 in reimbursement as it still owes the firm $42,000.

The School Board will review the audit report during Wednesday's meeting.